Conflicts of Interest, Directorships and Gifts

Question 1

What are the two main types of conflicts of interest?

Answer 1

1. ) Client A vs Client B

2. ) Firm and members versus Client

Question 2

Threats to objectivity with conflicts of interest are reduced to an acceptable level if:

Answer 2

1. ) There is full disclosure to the client

2. ) the client consents

Question 3

Is objectivity threatened when a member serves as a board member of client?

Answer 3

Yes

Question 4

Objectivity and integrity are threatened if MIPPs receive gifts or entertainment (or give to) whom?

Answer 4

1. ) Client
2. ) Client’s officers
3. ) Client’s directors
4. ) 10% Shareholders